I'm level 10 around the Islands of Freedom, and currently using:
Bowmen: Great for Ice Arrow and solid damage
Priests: Great against Undead. Bless and Heal take up a turn so end up not being all that useful unfortunately.
Beholders: Their sleep has has decent percentage and essentially disables one enemy.
Seadogs: Very available around the Islands, and they're pretty solid.
Archmages: I disagree with the hate on this unit. Their attacks have a good percentage of shocking an opponent and removing all their action points. The shield is pretty powerful for helping melee to tank, telekinesis has its uses from time to time, and they don't suffer from range penalties.
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